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Interest on house loan

dattatreya Sarma (accountant) (108 Points)

05 April 2010

one of our company employee had two houses for one house 105000/- interest he paid and for another one he paid 45000/- int which amount can i accept and can i accept both interest amounts?

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2 Replies

Amir (Learner) (4016 Points)
Replied 05 April 2010

Dear Datta,

The limit of Rs. 1.50 Lcas is not in respect of an assesee but it is in respect of a House.

Maximum one house can be claimed as Self Occupied. hence in the situation of 2 Self occupied houses - One of them has to be considered as Deemed Let out & whose expected rent shall be charged to tax (at the option of the asssessee)

The limit of Rs. 1.50 Lacs on Deduction of Interest applies in case of Self occupied house only. This means where the House is Actually let out or Deemed Let out there is no limit of deduction of the amount f Interest.

In ur case you should ask ur employee to declare that out of the two which one he wants to claim as Self Occupied & furnish theinformation about the expected rent of the other house so that it can be added to the income accordingly.(Criteria is the one with higher expected rent should be claimed as Self Occupied & the one with lower Expected rent should be Deemed as let out)

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SUNIL GARG (CHARTERED ACCOUNTANT) (175 Points)
Replied 05 April 2010

Hi Dattatreya,

If I am not wrong, you are asking whether an assessee can claim interest under house property for more than one house.

The answer is yes. The housing interest can be claimed for any no. of houses provided the maximum limit is Rs. 1,50,000 for self occupied house. And for your information only one house can be treated as Self Occupied Property.